CNBC Contributors: Bitcoin’s Latest Bull Run, Despite Prone To Bubble Creation, Was FOMO Fueled
Bitcoin Bull Run Was Caused By FOMO, CNBC Contributors Affirm
Bitcoin has been experiencing a very wild bull run lately. The token raised its price by at least $3,100 USD lately and it is now around $8,700 USD. This has obviously created a very significant buzz within the community as everybody has great expectations about the future of the token.
According to a CNBC contributor, however, most of the capital entering the market is coming from the investors’ fear of missing out (FOMO). Jim Iurio, the contributor in question, has affirmed that assets such as Bitcoin are very prone to create bubbles because their price goes up very fast. The discussion was made on the latest episode of CNBC’s Fast Money.
He also suggested that the crypto asset was, besides all its vocation for bubbles, a way to store value since, unlike fiat currency, it was not traded by Central Banks. This is definitely what interests some people about this asset.
Another contributor of the show, Brian Stutland, also affirmed that he believes that the bull run was started partly because people were afraid of missing the chance to make some money investing in cryptos. He compared Bitcoin’s price to gold’s, affirming that it did not rally so much at the same time.
In fact, Bitcoin is basically one of the assets which saw some of the major price increases this year. Only some other crypto assets surpassed it this year. Binance Coin (BNB) was not of them.
Stutland affirmed that people are having the idea of holding more Bitcoin now and to stop worrying about gold, which is something that is basically pumping the market a lot, too.
He also suggested that we got some pretty strong indications that the sentiment about cryptocurrencies might have changed a lot recently. Why? In part because people were starting to move from gold to the digital gold, BTC.
However, he affirmed that BTC would need to surpass another resistance level in order to breach the $9,000 USD mark. If the token was not able to do it, then its price might to go down a bit again.
Even with all the volatility, it looks like the investors at CBNC are still pretty confident that Bitcoin is turning out to be a great investment.